The "Yes - Markets Self-Adjust" camp believes that investors behave like
A) herds of animals.
B) logical, rational Vulcans.
C) Wayne Gretzky.
D) animal spirits.
E) broken thermostats.

Question

Quizplus · Accepted Answer

The "Yes - Markets Self-Adjust" camp believes that investors behave rationally and logically, like Vulcans. They believe that markets are efficient and will ultimately adjust to any new information, thereby producing fair prices for assets. This is in contrast to the "No - Markets Are Irrational" camp, which believes that markets are often irrational and subject to emotional or psychological influences.

The "Yes - Markets Self-Adjust" Camp Believes That Investors Behave